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SIGNIFICANT REDUCTION IN TAXES ON BASIC FOOD SUPPLIES…

Turkiye announced a significant reduction in taxes on basic food supplies Saturday to counter soaring inflation while also unveiling a new credit guarantee fund package and a new model to bring “under-the-mattress” gold into the economy.

President Recep Tayyip Erdoğan said the value-added tax (VAT) would be lowered to 1% from 8% on dairy products, fruit, vegetables and other basic food items. His decision, published in the Official Gazette, is to go into effect on Monday.

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Bread and flour

“As part of simplifying the VAT system, we are reducing VAT from 8% on basic food products to 1%. We already applied it for flour and bread,” Erdoğan said via videoconference during a Treasury and Finance Ministry press conference on new economic support packages.

In addition to the tax discount, Erdoğan said the government “expects” companies to lower their prices by 7% from Monday to reflect the change. He said these foods play a significant part in inflation.

The government will also create a task force to inspect prices and a mobile app to help citizens find the cheapest goods, Treasury and Finance Minister Nureddin Nebati said at the event.

Official data for January showed consumer prices rose by 48.69% annually, a 20-year high. Food and non-alcoholic beverages inflation topped 55%. The government has pledged to act and vowed to safeguard households against soaring prices.

www.dailysabah.com

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